Zillow Group Q3 2025 earnings: revenue up 16% as rentals and mortgage surge
Zillow's online real estate marketplace grew across every business line in Q3 2025, posted a small GAAP profit, and raised its outlook for the rest of the year.
| Q3 2025 | Reported |
|---|---|
| EPS | $0.04 |
| Revenue | $676.0M |
Figures as reported by the company to the SEC for the quarter ended September 30, 2025. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Total revenue reached $676 million for the quarter, up 16% from a year earlier, with growth coming from all three of Zillow’s main businesses: home-sale-related services, rentals, and mortgages.
- Rentals was the fastest-growing segment, up 41% year over year to $174 million, and mortgage revenue rose 36% to $53 million. The larger “For Sale” business, which includes agent advertising and home-financing tie-ins, grew a more modest 10% to $488 million.
- Zillow reported GAAP net income of $10 million for the quarter, pushing its net margin to about 1%, roughly 4 percentage points better than a year earlier. The trailing-twelve-month net margin of 2.27% shows the company is now keeping a small but growing slice of each revenue dollar as actual profit.
- Adjusted EBITDA (operating cash profit before interest, taxes, depreciation, amortization and other non-cash or one-time items) came in at $165 million, a 24% margin, up more than 2 percentage points from a year ago. Management attributed the improvement to revenue growth outpacing costs and continued expense discipline.
- The gap between Zillow’s high 73% gross margin and its thin 0.41% operating margin (both trailing twelve months) is typical of an online marketplace: most revenue is kept after direct costs, but heavy spending on marketing, technology and sales eats into it before it reaches the bottom line.
- For the fourth quarter, Zillow guided to revenue of $645 million to $655 million, implying 16%-18% year-over-year growth, and Adjusted EBITDA of $145 million to $155 million. The company also reiterated its full-year outlook for mid-teens revenue growth, expanding EBITDA margins, and a positive GAAP net income for 2025.
- CEO Jeremy Wacksman said the results reflect Zillow’s push to make buying, selling, financing and renting easier by delivering strong consumer and partner experiences and executing on its strategy of bundling services like touring, financing and rentals together.
- Return on equity over the trailing twelve months was 1.28%, a modest figure that reflects how thin overall profitability still is relative to shareholders’ equity, even as margins have been improving.
Q3 2025 in context
| Metric | Sep 2025 | Sep 2024 | Change |
|---|---|---|---|
| Revenue | $676M | $581M | +16.4% |
| Net income | $10M | -$20M | +150.0% |
| Free cash flow | $73M | $138M | -47.1% |
| Diluted EPS | $0.04 | -$0.08 | +150.0% |
| Gross margin | 72.6% | 75.9% | -3.3 pts |
| Operating margin | -0.4% | -7.7% | +7.3 pts |
| Net margin | 1.5% | -3.4% | +4.9 pts |
Figures for the quarter ended Sep 2025 and the quarter ended Sep 2024, as reported to the SEC.
How the stock took it
Zillow Group Inc closed at $68.87 on Oct 29, 2025, the last session before the report, and at $71.53 on Oct 31, 2025, the first session after it — +3.9% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: company report · earnings call